Sorting Out SSNs, TINs, ITINs, and EINs: Which Number Goes on the Form?

At a glance

• "TIN" is the umbrella term. Social Security numbers, EINs, and ITINs are all TINs..
• When a form asks for a "TIN," it wants the number of whoever owns the account: you, your trust, an estate, or a business.
• An "employer" identification number isn't just for employers. Trusts and estates use them too.
• A trust's number can change. A revocable trust usually uses your Social Security number while you are alive, and it needs its own EIN after you die.
• When in doubt, send the form to your attorney or accountant through a secure channel before you sign it.

If tax identification numbers confuse you, you're in good company. The rules are clear enough on paper, but the names are misleading, and the forms don't always help. Even professionals who don't apply for these numbers regularly mix them up.

Take the employer identification number, or EIN. Despite its name, it isn't limited to employers. Your trust may need one even though it has never hired anyone. That's one reason many banks, brokers, and insurance companies ask instead for a "TIN," or taxpayer identification number. They aren't using the wrong term. TIN is the broader one, and it covers whichever number belongs to the account owner.

Let's sort it out.

TIN Is the Umbrella

The IRS needs a way to identify every person and entity it deals with. "Taxpayer Identification Number" is its general term for all of these numbers. The IRS lists five:

• Social Security number (SSN). Issued by the Social Security Administration to individuals.

• Employer identification number (EIN). Used by businesses, estates, and trusts.

• Individual taxpayer identification number (ITIN). For certain people who can't get a Social Security number, such as some nonresident and resident aliens and their spouses and dependents.

• Adoption taxpayer identification number (ATIN). A temporary number for a child being adopted.

• Preparer tax identification number (PTIN). For paid tax return preparers.

For most families, only the first three matter. SSNs and ITINs identify people. EINs identify everything else.

Which Number Goes on the Form?

The best clue is a simple question: who owns the account, asset, or benefit? If you own it, use your number. If your trust owns it, use the trust's number, whatever that is right now.

Which Number Goes on the Form?

Whose account or asset is it?	Number to use	Keep in mind
Yours, in your own name	Your SSN	An ITIN if you aren’t eligible for an SSN
Your revocable trust, while you are alive	Usually your SSN	The trust is ignored for income tax while you live; no separate return
A joint revocable trust, both spouses alive	Usually one spouse’s SSN	Use the number your attorney designated, consistently
A joint trust after the first death	Survivor’s share: survivor’s SSN. Family or bypass trust: its own EIN	The split often happens at the first death, not the second
A revocable trust after the grantor dies	The trust’s new EIN	Never the decedent’s SSN
An irrevocable trust taxed to the grantor, such as many Medicaid asset protection trusts	Often the trust’s EIN; sometimes the grantor’s SSN	Check the certification of trust or ask the drafting attorney
Any other irrevocable trust	The trust’s EIN	The trust files its own Form 1041
A probate estate	The estate’s EIN	Separate from any trust’s EIN
A business with employees, a partnership, or a corporation	The business’s EIN	One EIN per entity; never shared
A sole proprietorship or single-member LLC with no employees	Often the owner’s SSN	Excise taxes, retirement plans, or a bank’s policy may still require an EIN

A general guide only. The trust document and the way the trust is taxed control, so confirm the number with your attorney or accountant before you sign.

Trusts: The Number Follows the Tax Status

While you are alive, a revocable trust is usually a "grantor trust." For income tax purposes it is ignored: its income is reported on your own return, and it typically uses your Social Security number.

Irrevocable trusts vary. Some are taxed as separate taxpayers and always need their own EIN. Others, including many Medicaid asset protection trusts, are still taxed to the grantor. Those trusts often get an EIN anyway, but the trust's income may still be reported to the grantor. Your certification of trust, or the attorney or accountant who set up the trust, can tell you which number it uses.

When the grantor dies, a revocable trust usually becomes irrevocable and a separate taxpayer, and it needs its own EIN. Getting that application right matters more than most people expect; see our article on getting the trust's EIN right after a death.

Applying for an EIN Without an SSN or ITIN

To apply online, the IRS requires the Social Security number or ITIN of the "responsible party," the person who actually controls the entity (IRS). If the person in control has neither, the choices are:

• Get an ITIN first, then apply online.

• Apply on paper. File Form SS-4 by fax or mail. Keep a copy of the signed Form SS-4. The online tool shows the assignment notice on screen. The fax and mail paths do not, and that copy is what the next institution will ask for.

Don't count on the IRS phone line if you are not an international applicant  Phone applications are only for applicants with no legal residence or principal place of business in the United States. A U.S. trustee who has neither an SSN nor an ITIN will be turned away and told to fax or mail Form SS-4.

An attorney or accountant can help as an authorized third-party designee, with your signed authorization. A designee can't stand in as the responsible party, though. That has to be the person who really controls the entity.

SSN or ITIN: What's the Difference?

A Social Security number is tied to work authorization and to Social Security benefits at retirement or disability. An ITIN is only for taxes. It lets someone who can't get a Social Security number, such as a nonresident who owns U.S. property or a business, file returns and pay tax. It does not authorize work or create Social Security benefits.

Still Confused?

Ask before you sign. Your attorney or accountant can usually identify the right number in minutes, and a wrong number on an account application can take months to untangle.

If you're not sure which number a form wants, send it to us before you complete it, with a note about what you're trying to do. Please use a secure portal or encrypted email rather than ordinary email or fax, especially once a Social Security number is on the page. We'll fill in the correct number and send it back.

Bottom Line

"TIN" is the family name; SSN, EIN, and ITIN are its members. Match the number to whoever owns the account, and remember that a trust's number can change with its tax status, most often at a death. When the form and the facts don't line up, a quick question now saves a lot of trouble later.

The Trust's New Tax ID: A Simple Form That Can Cause Big Problems

 

At a glance

• When the grantor dies, a revocable trust usually becomes irrevocable and needs its own employer identification number (EIN).
• The application is free and online, but a few entries decide where IRS mail goes and which years the IRS expects returns.
• A wrong start date, a wrong entity type, or the decedent named as responsible party can produce years of IRS notices.
• A trust can owe no tax and still have to file Form 1041.
• If you already have an EIN, you can confirm what the IRS has on file with one phone call.

Seemingly simple decisions can cause real difficulty in administering an estate. One of them is how to get the trust its new tax identification number after the grantor dies: whether the successor trustee applies alone, accepts help from a bank teller or a friend, or asks an attorney or accountant to handle it.

What Changes at Death

The grantor, sometimes called the settlor, is the person who creates the trust and usually puts property into it. While the grantor is alive, a revocable trust is generally a "grantor trust" for income tax purposes. It has no separate tax existence. In most cases it uses the grantor's Social Security number, and the grantor reports the trust's income on a personal return.

When the last grantor dies, that changes. The trust becomes irrevocable and a separate taxpayer, and it needs its own EIN (Form SS-4 instructions; Treas. Reg. § 301.6109-1(a)(2)). A trust cannot keep using a dead person's Social Security number.  

Two early mistakes are common: assuming nothing needs to be done with a joint trust when the first spouse dies, and assuming that a trust with little or no income needs neither its own EIN nor a tax return.

    • Joint trusts need attention at the first death. In many joint trusts, the first spouse's death creates an irrevocable family or bypass trust that needs its own EIN right away. The surviving spouse's share usually keeps using the survivor's Social Security number. Treating the whole trust as unchanged until the second death is a common mistake.

    • Filing is not limited to trusts that owe tax. A domestic trust must file Form 1041 if it has any taxable income, if it has gross income of $600 or more, or if it has a nonresident-alien beneficiary (Form 1041 instructions). A trust can owe no tax and still have to file.

Two other decisions come up at the same time:

    • The § 645 election. A revocable trust can elect to be treated as part of the decedent's estate for income tax purposes (Form 8855). The election can allow a fiscal year and a single return. It is easy to miss if no one raises it.

    • Form 56. Form 56 tells the IRS who the fiduciary is.

Why the Paperwork Matters

Institutions need to know the trust's exact name, who the trustee is, and what the trustee may do. In Ohio, a certification of trust or Certificate of Trust, gives them that without disclosing the whole trust document. A memorandum of trust is used mainly when recording real estate ( and in most cases is unnecessary if a certificate trust is recorded). These documents often show the trust's EIN as well.

When an attorney or accountant handles the application and the certification together, both are usually done within a few days and agree with each other. Increasingly, though, successor trustees apply on their own, or rely on well-meaning helpers with neither legal nor tax training. The results range from frustrating to costly.

What Goes Wrong: Seven Cases

Each of these is drawn from actual cases.

    • The bank teller. A successor trustee goes to the bank to reach the trust's account. A helpful teller explains that the trust needs a new number and helps the trustee apply online. The account is closed, a new one is opened under the new EIN, and the trustee leaves with a slip of paper showing the number. At the next institution, the trustee presents the death certificate and the EIN and asks to liquidate the account. The institution refuses. It doesn't know what the trust's title is or should be, or what authority the successor trustee has. After several attempts, the trustee hires an attorney to prepare the documents that would have prevented the delay in the first place.

    • Same facts, wrong date. The attorney reviews the teller's paperwork and finds that the application listed the date the trust was signed, years ago, as the date it was funded. For a trust that becomes irrevocable at death, the right date is generally the date of death, when the trust first needed its own number. A wrong date can produce IRS letters demanding Form 1041 returns for every year back to that date.

The letters reflect a matching problem from a bad application. They do not mean every trust must file from the day it was signed. The attorney offers to help correct the record now, before the letters arrive, rather than answer them later.

    • Same facts, no copy. This time the teller applied online and printed nothing. The attorney can't tell what was entered and is reluctant to rely on a number that may cause loss later. Applying for a second number is not the answer. The IRS does not cancel EINs, and a trust should have only one. Instead, the trustee calls the IRS Business & Specialty Tax Line (800-829-4933) and asks for a 147C letter. The letter confirms the number and what the IRS has on file, and the trustee and attorney correct anything that is wrong.  

    • The decedent as responsible party. The teller names the deceased grantor as the responsible party, because the grantor created the trust. Form SS-4 still describes the responsible party for a trust as the grantor, owner, or trustor, and for an estate as the fiduciary. After the grantor is dead, though, the person who controls the trust is the successor trustee, and that trustee's number belongs on the application. Naming the decedent sends the mail to a dead person at an address the trustee is about to sell. Here the trust also received the decedent's IRA, which made the trust's income taxable. No one told the trustee a Form 1041 was due, and the IRS letters went unread at the old house. By the time the trustee learned of the return, the trust's assets had been distributed. A fiduciary who distributes assets before paying federal taxes can be personally liable. The trustee paid the tax, penalties, and interest from personal funds.

    • The beneficiary who was also trustee. An insurance agent helps a successor trustee fill out a life insurance claim form, apply online for an EIN, and open a money market account for the proceeds. The trustee is also the trust's only beneficiary and receives means-tested benefits, such as SSI and Medicaid. The trust was drafted as a third-party special-needs trust to protect those benefits. A beneficiary who is also sole trustee can lose the protection the trust was written to give, and a distribution can count as income in the month it is paid. Some states, and some benefit programs, are stricter than others. Here the trustee needed advice before filing the claim. Resigning as trustee before the money landed was the point of the trust's design. No one told him, and the beneficiary lost benefits, including health coverage. The EIN wasn't the cause. The lack of legal advice was.

    • Fourteen years of letters. A successor trustee applies online and administers the trust. The application lists the decedent as responsible party, the decedent's home as the mailing address, and the wrong start date. The IRS sends letters demanding Form 1041 returns for fourteen tax years, all to the decedent's home, which the trustee has already sold. Eventually a revenue agent calls. With the trust's assets long distributed, the trustee pays an attorney and an accountant from her own funds to resolve the matter. The returns were never really owed for those years; the trouble came from a bad application and mail that no one received.

    • The wrong digits. A family friend helps the trustee get an EIN but writes the number down wrong. Neither notices. The IRS contacts the trust when a return is filed under the wrong number, and an accountant is hired to sort it out. A 147C letter would have caught the error in minutes.

Where the Trust’s EIN Application Goes Wrong

Item on Form SS-4	Common mistake	What to enter instead	What can happen
Legal name (line 1)	A shorthand name that doesn’t match the trust document	The trust’s exact name and date, matching the certification of trust	Institutions can’t match the number to the account title
Mailing address (lines 4a–4b)	The decedent’s home	The successor trustee’s address, or the attorney’s or accountant’s office	IRS letters go to a house that is about to be sold, and no one reads them
Responsible party (lines 7a–7b)	The deceased grantor	The successor trustee, who now controls the trust	The IRS links the trust to a dead person; mismatches and notices follow
Type of entity (line 9a)	“Estate” checked for a trust, or a trust number used for a probate estate	“Trust” for the trust; a separate EIN for any probate estate	Returns and notices are filed under the wrong kind of taxpayer
Date funded (line 11)	The date the trust was signed or first funded, years ago	Generally the date of death, when the trust first needed its own EIN	Letters can demand Form 1041 returns for every year back to that date
Closing month (line 12)	A fiscal year picked without a § 645 election	December, unless the trust will make a § 645 election to be taxed with the estate	Returns filed on the wrong schedule; a planning opportunity missed
Third-party designee	A helper applies with no written authority and keeps no copy	An authorized designee, a signed authorization, and a saved copy of the application	No one can later show what was entered or fix it quickly

Line numbers refer to the current Form SS-4. The IRS revises the form from time to time, so check the current instructions before applying.

If You Already Have an EIN

• Confirm what the IRS has. Call the IRS Business & Specialty Tax Line at 800-829-4933 and ask for a 147C letter. Check the trust's name, the mailing address, and the start date.

• Answer every notice. If letters arrive demanding returns for years before the death, respond in writing. Explain the date of death and the date the trust first needed its own number. Ignoring the letters lets the problem grow.

• Report changes on Form 8822-B. Use Form 8822-B to report a new mailing address or a new responsible party, such as a change of trustee. A change of responsible party must be reported within 60 days. Form 8822-B does not, by itself, fix a bad original application.

• Keep the paper. Save the IRS confirmation notice and a copy of the application with the trust's records.

A Word to Helpful Professionals

Tellers, bankers, insurance agents, brokers, financial planners, and friends often help with this application in good faith. IRS procedures require a third party who applies on someone else's behalf to be authorized by that person. When the helper skips that step or keeps no copy, a simple typo or online glitch can take weeks to untangle. Fixing an online mistake can take longer than getting the number right the first time.

Helpers should also know that they may be liable for an application completed incorrectly, and that their professional insurance may not cover the loss. For non-lawyers, advising a trustee on these choices may amount to the unauthorized practice of law or go beyond the scope of their license.

Bottom Line

The EIN application is free, and a careful trustee can complete it. But a handful of entries decide where the IRS sends its mail and which years it expects returns: the start date, the mailing address, the responsible party, the type of entity, and the tax year. Other decisions travel with it, such as the § 645 election, Form 56, a joint trust's first-death split, and the certification of trust institutions will ask for. That is where an attorney or accountant earns the fee. A few hours of professional help at the start costs far less than years of IRS letters, a frozen account, or a trustee paying the trust's taxes out of pocket.

Protecting a Deceased Person's Identity

At a Glance-

• Thieves target the weeks right after a death, when no one is watching the accounts.
• The first steps cost nothing and need no court order: a careful obituary, a secured home, a protected phone line, and controlled death certificates.
• Credit bureau notices, mail control, and account changes follow as soon as someone has authority.
• Never "close" a retirement account. Notify the custodian and let the beneficiaries handle the transfer.
• Keep a log. If fraud surfaces later, it shows the estate acted promptly.

Why the Weeks After a Death Are Dangerous

Identity theft does not end with death. The weeks after a death are among the most vulnerable for a person's personal and financial information. Criminals read obituaries, scan public records, and exploit the delays that come while a family grieves and an estate is organized. A stolen Social Security number, a redirected piece of mail, or an overlooked online account can be used to open credit, file a false tax return, drain accounts, or even attempt a forged deed.

The reason is simple. The victim can no longer watch the accounts or dispute charges, and the family is overwhelmed. The longer the gap between the death and the lockdown, the bigger the opportunity. Acting early is far easier than unwinding fraudulent accounts, defending collection actions, or recovering stolen funds later.

Who Has Authority, and When

A fiduciary owes the estate reasonable care, loyalty, and confidentiality. In practice, reasonable care includes prompt, sensible steps to keep the decedent's identity and assets out of a thief's hands.

The catch is authority. A power of attorney ends at death, and so does a guardian's authority to act. After a death, the people who can act are the successor trustee, for assets held in a trust, and the executor, administrator, or commissioner appointed by the probate court.   In Ohio, the court may appoint an executor, an administrator, or a commissioner; the paper is Letters of Authority.  In Missouri, the he court may appoint an executor or an administrator; the court paper is the court paper is Letters Testamentary or Letters of Administration.

If there is a trust, the successor trustee should be able to monitor, track, and document activity on the trust's assets right away. If that isn't sufficient, for whatever reason, consider early the appointment of a commissioner, administrator, or executor through the probate court, but seek legal counsel. Common reasons include assets outside the trust, an institution that insists on court papers, and the post office, which forwards a deceased person's mail only for an appointed executor or administrator. 

Until someone is appointed, the family can still do a great deal. The steps below are grouped by timing, starting with the ones that need no authority at all.

The First 72 Hours

These steps need no court order.

• Write a careful obituary. Leave out the full date of birth, the mother's maiden name, the street address, and other details that answer common security questions. Never publish the home address alongside the service times.

• Guard the home during services. Burglars watch for funerals and visitations. Have someone stay at the house.

• Secure the residence. If the home will be vacant, tell the insurer, because many policies limit coverage after a period of vacancy. Remove valuables and papers, change or add locks, use timers and outside lighting, and consider cameras. When the house is listed for sale, avoid lockboxes that hold keys.

• Collect the wallet, checkbooks, and cards. Lock them up. Note who else had access to cards, keys, or passwords, such as caregivers, cleaners, or relatives.

• Keep the phone line active. The decedent's cell number often receives the login codes for bank and email accounts. Keep paying the bill, and ask the carrier for a port-out PIN or number lock to block SIM-swap theft.

• Secure devices, but don't wipe them. Phones, computers, and tablets hold photos, records, authentication apps, and sometimes crypto keys. Wiping them can destroy estate property. Store them safely until the contents are preserved and the fiduciary approves.

• Control the death certificates. Many states print the Social Security number on the certificate. Order only the certified copies you need in a single request, and have them delivered to the funeral home or the fiduciary rather than to an empty house. You should request return of the originals, even if mailed, but in the latter case enclose a self-addressed stamp envelope for return.  Keep track of who has one.  Ohio law says the certificate contains the SSN. In practice, copies issued to the general public omit it for five years unless the requester is eligible and asks for it.

• Confirm that Social Security knows. The funeral home usually reports the death to the Social Security Administration. Benefits are paid a month behind, so the payment that arrives in the month after death must be returned. Don't spend it.

The First Two Weeks

• Notify the credit bureaus. Write to Equifax, Experian, and TransUnion. Include a copy of the death certificate and proof of your authority. Ask that the file be marked "Deceased – Do Not Issue Credit," and request a copy of the decedent's credit report. Each bureau says it passes the notice to the others. Write to all three anyway, and confirm. Bureaus accept a spouse or an executor; ask whether they will accept a successor trustee.

• Don't forget the fourth bureau. Innovis will add a deceased statement on request.

• Ask about a freeze. The deceased notice is the main tool. Some bureaus will also place a security freeze on a decedent's file. Ask.

• Flag the specialty agencies. ChexSystems and Early Warning Services track checking and savings accounts. NCTUE tracks phone, cable, and utility accounts. Send each a death certificate and proof of authority, and ask for a deceased notation or a freeze.

• Review the credit reports. Look for unfamiliar accounts and recent inquiries. They may show that fraud is already under way.

• Take control of the mail. This step needs an appointed executor or administrator. The Postal Service redirects a deceased person's mail only in person, and only with proof of appointment; a death certificate alone is not enough (USPS). Ask the post office about any holds or forwarding orders the family did not request.

• Stop the junk mail. Register the decedent on the DMAchoice Deceased Do Not Contact list to cut off pre-approved credit offers.

• Sign up for property fraud alerts. Many Ohio counties will email you when any document is recorded under a name you enroll, including Franklin, Summit, and Stark. Enroll both the decedent's name and the trust's name. Check with your county recorder or fiscal officer.

• Cancel the driver's license and passport. Surrender the license or state ID to the BMV so a duplicate can't be issued. Mail the passport to the State Department with a copy of the death certificate to cancel it.

• Cancel automatic payments. Stop subscriptions, automatic payments, and recurring transfers that are no longer needed.

The First 90 Days

Most of these steps need formal authority.

• Get an EIN/TIN. The estate needs its own Employer Identification Number (EIN) or Taxpayer Identification Number (TIN). So does a trust that became irrevocable at death. Open estate or trust accounts under the new number and move assets promptly. This shortens the time assets can be reached through the decedent's old information.  For help, see our articles: "Sorting the confusion between SSNs,TINs, ITINs, and EINs" and  "Retain an Attorney or Accountant to Seek and Obtain a Taxpayer Identification Number for a Trust,"

• File Form 56. IRS Form 56 tells the IRS who the fiduciary is.

• Handle joint accounts correctly. A joint account with survivorship belongs to the survivor. Retitle it in the survivor's name; it does not go to the estate.

• Retitle estate and trust accounts. Individual accounts with no beneficiary designation move to the estate or the trust. Ask each institution to mark the decedent's records "Deceased."

• Do not close retirement accounts. IRAs, 401(k)s, and annuities pass to the named beneficiaries. Cashing one out can trigger all the income tax at once and wipe out the beneficiaries' options. Notify the custodian, and let the beneficiaries handle the transfer. Investment accounts should generally be transferred, not sold in a hurry.

• Close the credit cards. Close individual credit cards, ask that each be marked "Deceased," and destroy the cards.

• Notify insurers, pension plans, and annuity companies.

• Notify other agencies as needed. These include the Department of Veterans Affairs, professional licensing boards, and, where relevant, U.S. Citizenship and Immigration Services. Voter rolls are usually updated from death records; contact the board of elections if they aren't.

• Secure the online accounts. Email is the gateway to password resets. Keep the main email account open only as long as it is needed for login codes, then close it. Change passwords and turn on two-factor authentication for any account that must stay open during administration, and close the rest. Memorialize or remove social media profiles; public profiles supply personal details and photos thieves use. For more, see my articles on digital assets in your estate plan and the digital assets inventory instructions.

Through the First Year

• File the final return promptly. A filed return is the best defense against a fraudulent refund claim. If the IRS rejects an e-filed return because the Social Security number was already used, file on paper with Form 14039, the Identity Theft Affidavit.

• Watch the IRS mail. Look for notices about returns no one in the family filed.

• Review medical statements. Check Medicare Summary Notices and supplemental-plan statements for services billed after the date of death. Report them to Medicare at 1-800-MEDICARE.

• Recheck the credit reports. Pull them periodically for at least a year.

• Report fraud quickly. If fraud surfaces, report it at IdentityTheft.gov and to local police. Send the creditor a written dispute with a copy of the death certificate.

• Keep a log. Record every institution notified, the date, the method, and the confirmation number. If fraud surfaces later, the log shows the estate acted diligently.

The free notices above block most new accounts. The tools below add an early warning. Some are free; some are paid subscriptions.

Tools That Watch for Fraud After a Death

Tool	What it watches or blocks	Cost	Who can use it	Watch out for
Equifax, Experian, TransUnion	“Deceased” notice on the credit file blocks new credit; you can request the decedent’s report	Free	Spouse or executor; send a death certificate and proof of authority by mail	Each bureau says it shares the notice with the others. Write to all three anyway, and confirm.
Innovis	Fourth national credit bureau; adds a deceased statement to the file	Free	Spouse or legal representative; court papers if not named on the death certificate	Often overlooked because it isn’t one of the “big three”
ChexSystems and Early Warning Services	Checking and savings account applications and history	Free	Fiduciary with a death certificate and proof of authority	No published process for decedents; call or write and ask for a deceased notation or a security freeze
NCTUE	New phone, cable, and utility accounts	Free	Fiduciary with a death certificate and proof of authority	No published process for decedents; ask for a freeze
County property fraud alerts (for example, Franklin, Summit, Stark)	Emails you when any document is recorded under a name you enroll	Generally free	Anyone; enroll the decedent’s name and the trust’s name	Covers one county only; people with the same name trigger false alerts
Home Title Lock	Monitors title and mortgage records; offers help restoring title after fraud	$19.95 a month, or $227.40 a year	Homeowners; ask whether it will enroll a property held by an estate or trust	Despite the name, it does not lock the title. It alerts. A free county alert may cover the same ground.
EverSafe	Flags unusual activity across bank, investment, and credit card accounts, credit files, and real estate	Monthly subscription	Marketed to older adults, families, and fiduciaries	Built for monitoring during life. Confirm it can be used during estate administration before you subscribe.
Bank and brokerage alerts	Texts or emails for withdrawals, transfers, address changes, and new payees	Free	The fiduciary, once the accounts are in the estate’s or trust’s name	Turn on every alert type offered, not just the defaults
DMAchoice Deceased Do Not Contact	Removes the name from marketing lists, including pre-approved credit offers	Free online; $1 by mail	Family member or fiduciary	Can take up to three months to take effect

Most commercial monitoring services were designed for living customers. Before paying for one, confirm that it will enroll a deceased person's name, an estate, or a trust. Prices and terms are as posted by each provider and may change.

Bottom Line

Families already dealing with grief should not have to become full-time fraud investigators. You don't need to do everything on the first day. Start with the free steps that need no authority: the obituary, the house, the phone, and the death certificates. Then the credit bureaus and the mail. Then the accounts. If the trust can't reach everything, seek a court appointment early rather than late, BUT CONSULT WITH AN ATTORNEY; there are many estates that benefit from waiting six months from the date of death to open.  That's a whole different article.

A focused effort in the first days and weeks prevents the far larger problems that come when identity theft is discovered months later. It protects both the decedent's dignity and the estate's finances, and it leaves a clear record that the fiduciary acted with care.

IRS Changes EIN Application Policy - Requires an Individual “Responsible Party”

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The IRS announced on March 27, 2019 that the “responsible party” on applications for an employer identification number (EIN) must now be a natural person.  Individuals named as responsible party must have either a Social Security number (SSN) or an individual taxpayer identification number (ITIN).  The new requirement is intended to enhance security and improve transparency. 

An EIN is the tax identification number assigned to entities such as trusts, estates, retirement plans, LLCs, partnerships, and corporations.  An entity obtains such a number by completing the IRS Form SS-4 or an online application.  One question in the application process asks the applicant to identify the “responsible party,” which the IRS defines as “the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity.”  In cases where more than one person meets that definition, the entity may decide which individual should be the responsible party. In the past, a non-natural person, such as a trust, estate, or business entity (LLC, Corporation, or partnership) could be a "responsible party."  According to the IRS,"[t]he change will prohibit entities from using their own EINs to obtain additional EINs." 

In deciding who to list as the responsible party, the IRS encourages applicants to consider whether the party has “a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.”  The Form SS-4 Instructions provide a detailed explanation of who should be the responsible party for various types of entities. Only governmental entities and the military are exempt from this requirement, and may continue to list non-individual entities as the responsible party.

 If there are changes to the responsible party, the entity can change the responsible official designation by completing Form 8822-B, Change of Address or Responsible Party. A Form 8822-B must be filed within 60 days of a change.

This policy will go into effect for all EIN applications submitted on and after May 13, 2019.

More:

To read an article explaining why you should consider retaining a professional to apply for and obtain a an EIN, go here.

If you are confused about what a TIN, ITIN, and/or EIN  is, go here.

Retain an Attorney or Accountant to Seek and Obtain a Taxpayer Identification Number for a Trust

Seemingly simple decisions can cause unexpected difficulty administering an estate. Among these is the decision whether to utilize an attorney or accountant to  file for and obtain a taxpayer identification number (TIN) for a trust.  

Most revocable trusts change their tax and legal status upon the death of the last surviving grantor. Sometimes called a settlor, the grantor is the person that generally creates and contributes property to a trust that benefits the grantor during his or her life.  During the life of the grantor, particularly if the trust is revocable, the trust is considered a “grantor” trust under the Internal Revenue Code.  The significance of being classified as a grantor trust is that the trust does not have a separate tax existence; the grantor is not required to obtain a separate Taxpayer or Employer Identification Number (TIN or EIN), and the trust is not required to file a separate tax return.  The grantor affixes his or her social security number to assets requiring a TIN for the trust, and files only a personal income tax return.

Upon the death of the grantor, however, the IRS requires that the trust, which is now irrevocable, utilize a different TIN.  Simply, a trust cannot use the social security of a dead person.  If the trust has taxable income, the trust may also be required file a separate income tax return.  Thus, a successor trustee will typically file for and obtain a new TIN for the trust shortly after the death of the grantor. This application process is relatively simple, and common for attorneys and accountants familiar with trusts, the grantor trust rules in the Internal Revenue Code, and the distinctions between the the original revocable trust and the resulting irrevocable trust.  

Because the proper name and characterization of the trust on titles and accounts is important, attorneys will usually prepare for the successor trustee a Certificate or Memorandum of Trust, which permits financial institutions to properly title assets, and follow the instructions of the successor trustee.  These documents often identify the correct TIN. Filing for and obtaining the TIN, and preparing the Certificate or Memorandum of Trust is usually completed the same day, or within a few days of completion of the necessary forms, for a nominal fee: easy breezy nice and easy.

Increasingly, however, successor trustees are either filing for the TIN themselves, or relying upon professionals with neither accounting nor legal expertise to request and obtain the TIN.  The results can range from frustrating to devastating to the estate plan.

Consider the following examples of mistakes attorneys increasingly observe:

• The successor trustee goes to the bank in order to access the bank account.  The helpful teller advises the trustee of the need to obtain the TIN, and “assists” the successor trustee in applying online for the TIN.  The account is closed, and a new account is opened with the new TIN, and the trustee is given a piece of paper showing the TIN, and sent on his or her way.  The successor trustee goes to the next bank, broker, or financial advisor holding or managing trust accounts.  Confident that everything will go smoothly, the trustee presents the death certificate and the TIN to the institution with a polite request to liquidate the account.  The institution refuses, advising that they do not have everything needed.   The institution is unclear what the title of the trust is or should be, and what authority the successor trustee has regarding the account.  After several attempts the successor trustee is forced to contract an attorney to prepare documents that could have been prepared initially, which would have prevented the delay and frustration.

• The attorney in the foregoing example reviews the paperwork provided by the teller and realizes that the application is completed incorrectly, and that as a result the IRS will likely request the filing of Form 1041 trust income tax returns from the date of the creation of the trust through the present tax year.  In a “pay me now or pay me later,” series of alternatives, the attorney offers to correct the improperly completed application.

• The attorney in the foregoing example reviews the paperwork, but cannot determine whether the application for the TIN was properly prepared.  The teller prepared the application online, but did not print out a hard copy of the application. Concerned that improper preparation of the application will result in expense or loss to the trust, for which the trustee or heirs may seek to hold the attorney responsible, the attorney either (1) refuses to utilize the TIN and recommends abandonment of the TIN, charging the client for preparation of a new application, and paperwork abandoning the prior TIN, or (2) the attorney requires the trustee to sign an acknowledgment that use of the TIN may cause loss or expense, which releases and indemnifies  the attorney from loss resulting from continued use of of the TIN.

• The teller in the previous example identifies the grantor of the trust, now deceased, as the responsible party, since the grantor created the trust.  IRS correspondence is directed to the deceased grantor at the grantor’s last residence.  Because the property is promptly sold, the successor trustee is not advised that a Form 1041 income tax return must be filed. When the successor trustee learns that a return should have been filed, the trustee is forced to pay the tax liability, and resulting penalty and interest, from his personal assets since the trust assets were distributed. 

• An agent assisting a successor trustee in filling out a beneficiary claim form, assists the trustee in obtaining online a TIN, and opening a a money market account to hold the funds.  The successor trustee is the only beneficiary of the trust, and the recipient of various means-tested government benefits.  Although the trust was drafted to protect the assets for the benefit of the beneficiary, under state law, the protection is only effective if the beneficiary is not also the trustee.  Absent the important legal advice and direction to resign as trustee prior to filing the claim form he negotiates the account.  The trustee later learns that the claim of funds constituted income in the month that the claim was paid, thereby disqualifying the beneficiary from a host of government benefits, including free health care.  

• A successor trustee completes the application to obtain a TIN for the trust online, and proceeds to administer the trust estate.  The IRS sends letters demanding Form 1041 income tax returns for fourteen tax years.  The letters, unfortunately, are sent to the deceased grantor’s home, pursuant to the application, which home was promptly sold by the successor trustee.  The successor trustee is later contacted by a revenue agent.  With the assets of the trust long distributed, the trustee pays from her own funds an attorney and accountant to resolve the matter. 

• A family friend helps the successor trustee obtain a TIN, but writes down the TIN incorrectly.  Neither the friend nor the trustee realize the error.  The IRS contacts the taxpayer when a return is filed using the incorrect TIN.  An accountant is retained to investigate and resolve the problem.

Each of the foregoing represent actual cases. The application for a TIN may seem simple, but the terms used in the application, and the precise information requested can be confusing.  The fact that the application can be  prepared online may cause some to believe that the application is either very easy to complete, or that proper completion is unimportant.  Neither assumption is correct. 

Well-meaning professionals, such as tellers, bankers, insurance agents, brokers, and financial planners, and helpful friends may assume that they are are in safe waters completing the form for a customer or friend.  IRS rules require that third parties that complete the application identify themselves, and abide by record-keeping requirements, which rules the well-intentioned often fail to observe.  Failure to observe these rules may make impossible immediate solutions to online technical glitches or typograghical errors, thereby delaying adminstration of the estate.  Perhaps the ultimate tragic irony to the immediacy offered by the online application process is that failure to follow the third party disclosure, record preparation and record keeping rules may mean that a good TIN takes longer to obtain online than if it had been applied for by traditional mail.

Professionals should also be aware that there may be liability for applications prepared improperly, and that the professional insurance may or may not cover any loss.  Non-lawyers and non-accountants are properly cautioned that the completion of the forms, and the accompanying advice, may constitute the unauthorized practice of law, or exceed the scope of the professional's licensing.

Simply, retain an attorney or accountant to seek and obtain the TIN.

Sorting the confusion between SSNs,TINs, ITINs, and EINs

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If you are confused regarding taxpayer identification numbers, don't feel bad.  Although they are rather straight-forward and it is "technically" clear which you need in a particular situation, they are nonetheless confusing to lay persons, and even professionals that do not routinely apply for assignment of these numbers.  

Just the term Employer Identification Number (EIN) creates confusion, since it is not limited to just employers.  In fact, for this very reason, some financial companies. brokers, and insurance companies will not, on their forms, refer to an EIN, using instead the term Taxpayer Identification Number (TIN), when they clearly are requesting the former and not the latter.  Why?  The only explanation is that they know that your trust, for example, isn't an employer, and you will become confused that the request doesn't pertain to your trust.

There is another example of this type of practice regarding warning on tanks and tank trailers. "Flammable," right?  Well, except for the fact that there is, or at least was, technically no word, "flammable!" The correct word is "inflammable."  To avoid confusion, manufacturers use the "wrong" word rather than the "right," and for good reason- we wouldn't someone pounding, heating, or setting ablaze a tank that was labeled "inflammable," thinking incorrectly that it wouldn't burn or explode, right? In that same way, financial services companies use a more common reference Tax Identification Number rather than Employer Identification Number to "avoid" confusion. 

So let's see if we can clear any confusion.

What are Tax Identification Numbers? 

For the IRS to conduct its business, it must have an easy way to identify each individual, trust, and business or non-business entity. To do this, the IRS requires each individual and entity to have a Tax Identification Number. While most individuals use their Social Security Number (SSN) for filing taxes, most businesses and non-business entities, like trusts, must have a special tax identification number instead.

Please note that  we are referring generally to tax identification numbers.  There is a specific Taxpayer Identification Number (TIN) which the Service usually designates as (ITIN) for "Individual" Taxpayer Identification Number.   

SSN, ITIN or EIN: What’s the Difference?

There are three main categories of tax ID numbers: Social Security Numbers (SSN), Employer Identification Numbers (EIN) and Individual Taxpayer Identification Numbers (ITIN).  SSNs and ITINs are used for individuals. Generally, the ITIN is for those not eligible for an SSN, such as non-resident aliens or resident aliens not yet eligible for a social security number. 

For businesses and non-business entities, like trusts, the EIN is the most important tax identification number. Despite the name including "employer," it suits all businesses, or non-business entities such as a trust, even those with no employees. 

So one of the biggest clues what you need is "to what are you referring as the owner or beneficiary of the asset, account, or benefit?"  If you are referring to a trust, use the EIN for the trust.  

The trust usually uses your social security number if you are the Settlor/Grantor of a revocable trust.  When the trust qualifies as a "Grantor Trust,"  it is a disregarded entity which uses the Grantor's social security number.   

If the Trust is irrevocable, the trust may have a separate EIN, so you will need to either: 1) refer to the Certificate of Trust which will identify the EIN; or, 2) ask your attorney or accountant that obtained the EIN. Most attorneys make clear on the Certificate Trust is the irrevocable trust is treated by the IRS as a separate entity requiring an EIN, and typically will obtain one for the trust. 

Tax ID Numbers for Businesses

Most businesses require a special tax identification number for their filings with the IRS. Many other legal documents for businesses, including loan applications, bank account applications and permit applications, also require a tax identification number. Therefore, one of the first actions to take after setting up your business is to apply for an EIN.

Are There Exceptions?

There are cases in which business owners can use their own social security number rather than an EIN for filing taxes for their business. The two exceptions are sole proprietorships and certain LLCs, as long as the LLC does not have any employees. In these cases, the business owner can use his or her SSN in place of the EIN. However, even sole proprietors might need a EIN under certain circumstances, such as for excise tax returns or pension filings.

You have your choice of business structure, which might impact what type of Tax Identification Number you need. Start your tax ID application to receive your EIN number by filling out the form here. Alternatively, complete a sole proprietorship application and use your social security number instead. Our support team is available 24/7 to assist you with any questions you might have about filing these applications.

Do I Need an ITIN or Social Security Number to Get an EIN?

There are ways to get an EIN for your company without having either a Social Security number or an ITIN, but in most cases, you do use those other tax identifiers in your application. That’s because the IRS does require the person who takes responsibility for the registration to have one of these. If you do not have either identifier, you have two options.

• File for either a SSN or ITIN before applying for an EIN so that you can be listed as the point of contact for the company.
• Engage an accountant or lawyer willing to act as that contact for the company and submit their information so they can receive paper records regarding your EIN.

What Are the Differences Between a SSN and an ITIN?

The main difference is that the Social Security number is for those who are eligible for Social Security benefits, either at retirement or in the event of a disability. For residents of the U.S. and non-residents who own businesses in the country, the ITIN provides and individual tax identification option outside of Social Security. This is an important avenue for those who do not qualify for a Social Security number.

Can I Use a Tax ID Number for More Than One Business?

Generally, no. If your business needs its own EIN for any reason, you need to use a unique one that is just for that entity. Entrepreneurs with multiple companies they own as the sole owner, either through sole proprietorship or a single-member LLC, might have the option of lumping all their business taxes under one tax return by using their Social Security numbers and filing with Schedule C. Even then, if any of those businesses hire employees or seek bank loans, they will need their own EIN, and they will not be able to share.

Still Confused?

Your attorney or accountant will usually help you quickly identify and locate the correct number.  Rather than create additional work later, we suggest that clients fax or email the forms they are completing with an indication what they are trying to accomplish.   We usually will simply insert the correct "number" and send it back for completion.  Regardless, if you are confused, ask for help!

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